Crypto exchange Bitstamp has taken a significant step towards returning recovered digital assets to creditors of the now-defunct Mt. Gox exchange. This development marks a crucial milestone in the decade-long struggle to compensate those impacted by the notorious 2014 hack that eventually led to the collapse of Mt. Gox. Bitstamp is just one of the five exchanges, including Kraken, collaborating with the trustee to ensure the return of digital assets to creditors. Kraken recently announced the completion of the restitution process for its users.
Bitstamp revealed that it will be distributing Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH) received from the Mt. Gox trustees to its customers, commencing on July 25. Once necessary security checks are completed, recipients will have full control of their assets within a week. Although the initial distributions will not cover UK customers, they can anticipate the return of their assets in the upcoming months. Bitstamp has committed to providing further updates to its UK customers as the process proceeds.
Bitstamp’s global CEO Jean-Baptiste Graftieaux expressed his pride in the exchange’s role in facilitating the restitution process. He emphasized the remarkable growth of Bitcoin since the Mt. Gox hack, stating, “It’s a testament to Bitcoin’s value as an asset that, although the Mt. Gox investors should never have been unable to access their tokens, many will make a serious profit.” This statement reflects the significant surge in Bitcoin’s value from around $600 per coin during the Mt. Gox collapse to the current value of approximately $66,000 per coin.
With over $9 billion worth of Bitcoin, Bitcoin Cash, and Ethereum set to be distributed as part of the restitution process, the former users left stranded by the Mt. Gox collapse stand to receive substantial returns. The Mt. Gox exchange, dominant in the Bitcoin market from 2010 to 2014, accounted for more than 70% of Bitcoin transactions at its peak. However, the exchange was compelled to halt withdrawals in February 2014 following the discovery of suspicious activities in its digital wallets, leading to its subsequent bankruptcy.
Overall, the ongoing restitution process highlights the resilience of the cryptocurrency market and the efforts made to rectify past wrongs. The return of digital assets to Mt. Gox creditors signifies a step towards closure for those affected by the infamous hack, offering them a chance to benefit from the extraordinary growth of Bitcoin and other cryptocurrencies.